Allocation of 2011 Philippine Budget

At P1.645 trillion, the proposed budget for 2011 is 6.8 percent higher than the 2010 budget of P1.540 trillion. It represents 18.2 percent of the country’s Gross Domestic Product (GDP), a bit lower than the 18.5 percent share of the budget this year, indicating a smaller but more efficient government.

As stated in the State of the Nation Address of P-Noy, the government will protect the welfare of its people and look after the interest of the majority. Consistent with bias for the poor, the social services sector is the top priority. It will get a significant portion of the budget, some P560.8 billion or 34.09 percent of the total. The payment of debt burden comes next with P372.1 billion, 22.62 percent of the total budget. It is followed by economic services sector, with P361.1 billion (21.95 percent); general public services, with P273.5 billion (16.63 percent); and defense, with P77.5 billion (4.71 percent).

The 10 departments receiving the biggest share of the 2011 budget are the same as in this year’s budget. However, there are changes in their program composition and ranking.

1.    The Department of Education (DepEd), with P207.3 billion (including the Educational Facilities Fund) represents 12.6 percent of the total budget, and retains the top position. There has been a sharp increase of 18.4 percent (P32.3 billion) from its budget of P175.0 billion this year, attributed to the construction of 13,147 classrooms and the creation of 10,000 teaching positions. This will be the biggest increase allocated for education in over a decade.

2.    The Department of Public Works and Highways (DPWH) remains in second place, with P110.6 billion, or 6.7 percent of the total budget, despite some P6.9 billion in Priority Development Assistance being taken out from its budget.

3.    The Department of National Defense (DND), third among the top recipients of next year’s budget, gets an increase of 81.1 percent, from P57.8 billion in 2010 to P104.7 billion in 2011. The increase is attributed in part to the return of military pensions to DND’s budget. The Armed Forces of the Philippines Modernization Program fund of P5 billion is likewise transferred from the Special Purpose Fund to the DND for greater transparency and accountability, and better programming.

4.    The Department of the Interior and Local Government (DILG) exchanges places with the DND and is now ranked 4th. Its budget increased by 32.6 percent, from P66.5 billion in 2010 to P88.2 billion in 2011. Again, for better programming and accountability, the budget for police pensions has been placed under DILG supervision.

5.    The Department of Agriculture, retaining its position in 5th place, has a slight decrease of 8.5 percent in its budget, from P41.2 billion to P37.7 billion due to the reduction in the allocation for input subsidies (e.g., seeds, fertilizers, farm implements and biologics) for the production of rice, corn, fisheries, livestock and high-value commercial crops with the better targeting of these subsidies.

6.    The Department of Social Welfare and Development (DSWD) jumps to 6th from 8th this year, its budget increasing by P18.9 billion or 122.7 percent, from P15.4 billion to P34.3 billion. The remarkable increase provides for the second phase implementation of the KALAHI-CIDSS Project in 96 municipalities, conditional cash transfers to 2.3 million households, rice subsidy, and pensions for indigent senior citizens.

7.    The Department of Health (DOH) ranks 7th with P33.3 billion, up by 13.6 percent from the 2010 level of P29.3 billion.

8.    The Department of Transportation and Communications is in 8th place with a budget of P32.3 billion, an increase by 87.8 percent from P17.2 billion in 2010. The additional allocations will go to the expansion of infrastructure activities, particularly for the continued implementation of both North and South LRT lines, and the continuing subsidy to the MRT. Also included in the department’s budget for 2011 are navigation surveillance/air traffic management system and the Laguindingan Airport Development Project.

9.    The budget of the Department of Agrarian Reform (DAR) is 16.7 billion, decreased by 20.7 percent from 2010 on account of the transfer of the Tulay ng Pangulo program and its fund allocation to the DPWH.

10. The budget for the Department of Justice also increased to P14.3 billion and will ultimately continue to constitute one percent of the budget after consideration of the other personnel benefits.